Ripple has opposed the SEC’s motion to file an interlocutory appeal challenging its partial victory. Also, its XRP token has started the new month strong, posting strong on-chain metrics.

Ripple, claimed that SEC had not succeeded in proving the exceptional circumstances required for the court to accept its interlocutory appeal request. This took place on September 1^st.

Ripple’s objection

Ripple argued that the SEC was unsuccessful in establishing the three mandatory elements to declare an interlocutory appeal. The first condition is that the order involves a pure or controlling question of law. Nevertheless, the firm said the SEC does not meet this standard.

It noted that the court order in SEC v. Ripple relied on facts, and the court only applied the law to the facts before it. Consequently, the SEC attempted to dissociate the facts from the ruling, so getting approval for its appeal was a mistake. Ripple said it will depend on the same facts in Second Circuit court:

    “The Court did not rule that offers and sales over crypto asset trading platforms can never give rise to an investment contract. It found that Defendants’ Programmatic Sales were not sales of investment contracts on the facts of this case.”

Ripple also disagreed with the SEC’s argument that the decision in the case could affect other pending litigation.  It detected that other SEC enforcement actions have different factual and procedural stances. Hence, it falls to the SEC to meet its burden under the Howey test in those cases.

In the meantime, Ripple has responded to other SEC assertions, such as substantial grounds for differences of opinion and whether an immediate appeal will help expedite the case.

XRP’s on-chain activity improved considerably after the objection. The cryptocurrency started the month with a significant increase in profit, as its on-chain transaction volume reached 4.8 billion XRP. This is the uppermost volume since February 1.

Blockchain analytics firm Santiment reported that XRP on-chain circulation hit a 3-month high at 2.03 billion XRP.

Nonetheless, its price is still fighting. XRP has fallen 2.2% in the last 24 hours and is trading at $0.495 at press time. He has already parted with all the benefits of his partial victory a few weeks ago.

By Audy Castañeda

An event of paramount importance has taken place; a Chinese People’s Court recently published an innovative report that deepens the legality of cryptocurrencies within the country. The report claims that existing Chinese law legally recognizes virtual assets as property and assures their protection.

Regardless of Beijing’s strict 2021 prohibition on virtual assets, the courts of China have been gradually recognizing the property rights of the owners the virtual assets.  

It is of paramount importance to highlight that no administrative or public entities influence courts ‘decisions in China. Therefore, China´s Courts are autonomous and conduct their judicial proceedings independently.

These courts preside over a wide range of cases, including criminal, civil, administrative, and economic disputes.

Landmark Report Highlights Legal Protection of Cryptocurrencies

In essence, the report focuses on identifying the ownership attributes of virtual currency and the proper procedures for handling cases involving said assets. It explicitly recognizes the economic attributes of virtual assets and ultimately classifies them as legal property protected by Chinese law.

Apart from recognizing virtual assets as legal property, the report provides handy pieces of advice about what to do on crime related to these assets. The report recommends harmonizing criminal and civil law and handling them as separate issues.

This approach aims to strike a harmonious balance between safeguarding personal property rights and defending the broader interests of society.

China has executed strict regulatory procedures regarding cryptocurrencies and digital assets. The country had taken a tough stance, banning altogether all activities related to cryptocurrency. In the same vein, it also banned foreign crypto exchanges from serving clients from the inland.

This recognition is particularly noteworthy considering China’s previous stance on foreign digital assets. The country had imposed a total ban on all foreign digital assets, effectively labeling them illegal.

China’s History with Cryptocurrencies

For many years Chinese courts have been reluctant to accept digital assets. September 2022 was the year this started to change; a legal expert suggested that Chinese cryptocurrency holders should be legally protected when facing theft, misappropriation, or breach of loan agreements, despite the blanket ban on cryptocurrencies.

Significantly, later in May 2022, a Shanghai court officially recognized Bitcoin as virtual property. This decision is a remarkable event for the crypto world in China.

No longer after having virtual assets and cryptocurrencies banned by Chinese authorities, the mining bitcoins almost disappeared in China.  After a year, it came back resurfaced after a year and ended up achieving second place worldwide.

By Leonardo Pérez